Forex is short for foreign exchange. Forex trading is trading Foreign Currencies against each other. You can trade the Euro against the US Dollar for example. The symbol for that PAIR will be EUR/USD. If you buy or take a long position, you are saying that the EUR will go higher againts the USD. If you sell it or take a short position, you are betting that the USD will go higher against the EUR.
Needless to say, you can make money by either taking a buy or long position or a sell or short position...if ..your prediction is correct.
Dont worry if it all sounds scary and difficult. It isn't.
In stocks, you have at least 12,000 different companies or stocks to choose from. In forex trading you only have a few currencies to choose from!
The VOLUME of trading, meaning the amount of money being traded daily in Forex trading as compared to stocks is about 20 to 25 times more! It's DAILY volume is a whopping $3.2Trillion dollars!
For the most part, forex trading is open 24 hours a day from 2 pm Sunday, Pacific Time ALL THE WAY TO Friday at 1 pm Pacific Time! It does not shut down at 4 pm Eastern time DAILY like the stock market does!
In Forex trading, you can continue to play as the different world markets of Australia, Asia, Europe and the USA open and close.
Most Forex brokers offer demo accounts to potential customers. It is highly recommended that we practice for a few months, get 'dangerous enough' to make a profit, before opening and playing a real account.
I have a minimum of two practice or demo accounts at all times even as I trade a real account. Your demo and real accounts are played exactly the same. The only difference is that in demos you are using virtual money as compared to a real account which of course uses real money.... and you get a bit nervous when trading real money. Your jitters go away as your trade gets better.
It is fun fun fun!!!
I prefer www.FXCM.com for my trading. They are one of the biggest in the US and UK. Others have chosen other platforms.
If you wish to learn more, email me at blackhawk74@yahoo.com!!!
If you wish to see my current virtual trade performance visit my recent short articles in this blog.
Cheers!!!!
Joe Joson
USA
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